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6 Reasons to Consider Life Insurance, and When?

Few years ago, if you had asked us to give you 6 reasons to consider life insurance, and when, we, would have said that life insurance is not a need, given our nascent understanding of the matter. Today, we are millennials too, and we know that, when it comes to life insurance – the majority of us really don’t give a damn. After all, it is true that there are many other items deserving our attention and spending priorities, from student loans, mortgage payments, car loans, to lifestyle necessities like smartphones for our social networking, YOLO travels, Coldplay concert tickets and Instagram-worthy brunch places. In fact, day-to-day expenses like a cup of latte, two chapfan meals, parking and petrol can easily set us back RM50 a day! Times are hard!

I’m so healthy, I won’t die wan!

We can all resonate with that statement, also believe we are invincible like Superman and misfortunes will not occur to us. Seriously, wouldn’t it be super depressing to think about…DEATH at our young age? I mean, we have not even tasted LIFE to the fullest! On the other hand, on days when we do not feel so invincible, we put life insurance off because we can see any good reasons to consider life insurance we think committing to periodic insurance premiums would add more burden on our already tight, ringgit-stretched budgets.

But you see, life can be a risky business at the best of times, and the very reasons us millennials put off life insurance – such as loans commitments – are precisely why we need life insurance. We have had a paradigm shift in our understanding when we see how life can bring about unexpected changes in a blink of an eye, and we hope that we have given you these 6 reasons to consider life insurance, early when you are young, healthy and winning in your field of work!

1. Life insurance is a rite of passage and promotes sense of responsibility

Getting adequate coverage to protect our dependents from the unknown and help them through an otherwise difficult time of loss is essential. After all, “adulting” means being responsible for ourselves so that we can take care of our family, our parents, our assets and our business partners.

If the unfortunate happens to you, with your life insurance payout, you could leave your semi-retired parents with enough money to pay off your home mortgage and car loan. And what if you fall sick and rack up medical bills? Your family could use the payout to cover the medical bills as well as final expenses. If you are a young father, your wife and baby girl can use the payout as income replacement if you are incapable of working due to a bad accident.

2. Life insurance is cheapest when young

Investing in solid health or life insurance when we are young and healthy simply means more affordable premiums. A similar healthcare policy would be more expensive for older adults in their 30s and 40s as compared to those in their 20s.

Again, youths might dismiss the need for insurance premiums due to their decent health condition. However, chronic conditions such as high blood pressure and high cholesterol have become more common amongst people in their 30s and 40s, therefore having financial backup is an excellent precautionary step, considering the weak financial status of many youths to prepare them for any sudden change in health conditions.

3. Life insurance helps you focus on long term investment

Investing in a comprehensive life insurance plan at young age does not only guarantee better coverage, it also ensures lower premiums paid, hence the extra capital for young people like you and I to invest in other financial instruments to accumulate our wealth.

As an example, a difference in premium of RM100 monthly when a plan is bought when young compared to older adults, say 20 years old and 30 years old, would save one RM1200 annually, and the money saved could then be used to invest in different financial instruments providing higher cumulative returns in the long run (not to mention extra 10 years of coverage!).

This is one of the most important reasons to consider life insurance.

4. Life insurance is a lifeline for when you can no longer work due to disability

Many young people have mistaken that life insurance only protects you against death, and that you won’t see the return of your money (because, for the lack of a better word, you’d be…dead :/), but in actual fact, most life insurance policy has another benefit, called total permanent disability. Should anything happen to you, and you will not be able to go to work and earn a salary, the total permanent disability benefit will help pay to put groceries on your table or protect you from being evicted or having your car repossessed.

5. Life insurance is a lifeline for business owners

To fellow young entrepreneurs out there, life Insurance can also be bought by the business on key persons or business owners. In other words, insurance can also help the business to recover from financial losses in the event of an important employee’s untimely death. The business pays the premiums and if the key person passes on, the proceeds are paid out to the beneficiaries, for example, other business partners to continue operating the business.

Helping your business to move forward and continue hustling even after an unforeseen tragedy/predicament is one key reason to consider life insurance.

6. In fact, life insurance is also a better option for employee benefits than increased salary

As a business owner, employee satisfaction is one key item to ensure a thriving business. Whilst insurance isn’t the sexiest and most desirable employee benefit, you will certainly portray a more caring and considerate image towards your employees. Keep your employees happy and you’ll be happy J This could be a more cost-effective way of rewarding your employees than pay increments. You suspect that obtaining insurance is a cumbersome process, and the hefty premiums don’t gel well with your bootstrapping mode. Actually, individual employee sign up process takes only 5 minutes and could be done clicking some buttons, all in one seating, in the comfort of your home/office! Talk about start-up efficiency!

Yes I have considered Life Insurance, now what?

We hope we have given you ample reasons to considered life insurance.

Most millennials tell us; “Insurance sounds like a complicated business and I don’t understand it, GAH!” We hear you. At PolicyStreet, we are here as your friend to make the road to coverage a little smoother, and we have just the right product to meet your needs and budget.

Introducing Manulife ManuProtect Insurance, the simplest form of life insurance best bought by people like you and I – with temporary needs, and at our life stage when large sums of insurance are needed at a fraction of a price, for a limited period only. Instant online coverage of RM50,000 from RM5.50* per month obtained via PC/mobile in just 10 mins*, no extensive medical checkup necessary – apa lagi kita mau.